Petrol Stop - Toyota suspends sales of 8 models in recall

Toyota suspends sales of 8 models in recall

Tuesday, 26 January 2010

27 Jan 2010;economictimes.indiatimes.com:DETROIT/TOKYO: Toyota Motor Corp said on Tuesday it will suspend sales of eight models involved in a recall announced last week for potentially faulty accelerator pedals. Toyota also said it would halt production at plants in the United States and Canada in the first week of February. In Tokyo shares of Toyota fell 2.7 percent by midmorning on Wednesday, compared with a 0.2 percent fall in the Nikkei average. "The recall itself won't be a big problem for Toyota's earnings, but suspending production and sales could have a big impact depending on how long it lasts," said Koji Endo, an auto analyst at Advanced Research Japan. The sales suspension and recall includes Toyota's top-selling vehicle in North America, the Camry, for model years since 2007. Also included are the 2009-2010 model year RAV4, Corolla and Matrix, the 2008-2010 model year Sequoia, the 2007-2010 model year Tundra, the 2005-2010 model year Avalon and the 2010 model year Highlander. Annual combined sales of these models are 1 million cars in North America, more than half of Toyota's annual sales there last year, according to Advance Research's Endo. Toyota is suspending production of the models for the first week of February at plants in North America. The plants are located in Indiana, Texas, Kentucky, and in Ontario. Bob Carter, Toyota U.S. group vice president, said the world's No.1 automaker is taking the actions to ensure safety and restore confidence in Toyota among consumers.